Allowances

Allowances are used on pay lines when processing a pay run, in addition to the required Pay Rates and Deductions.

We have provided the most commonly required Allowances as System Defaults (Templates) that can be used "as is" or copied and modified to suit your requirements.

With Single Touch Payroll Phase 2, there have been significant changes to the reporting of Allowances. In STP Phase 1, some Allowances were reported as part of Gross, and others were reported separately. All Allowances are now reported separately using the following codes in STP Phase 2: Please refer to the ATO for detailed guidance for separately reported Allowance Types.

Allowances* (PAYEVNTEMP226)

CAR Car expense.

CD Cents per Kilometre.

TRANSPORT Award Transport.

AD Award Transport Payments.

LAUNDRY Laundry Allowance.

LD Laundry Allowance.

MEALS Overtime Meal Allowance.

MD Overtime Meal Allowance.

TRAVEL Travel Allowance.

RD Travel Allowance.

OTHER Other Allowance.

OD Other Allowances.

TD Tool Allowance.

KN Task Allowances.

QN Qualification Allowances.

Allowances are separated into a separate category for ease of use and contain allowances that are

Reportable

Allowances that must be reported to the ATO.

Non-Reportable

Allowances that are not STP Reported, typically due to being less than the relevant ATO measure.

Back Payments

Used when a Payee is underpaid to ensure the correct PAYGW Calculation is applied.

Allowance File

The Allowance File contains three sections:

Allowance Details allows the entry of the Description, $ or %, etc.

Taxation contains the specific STP reporting rules.

Superannuation: determines the superannuation rules.

Allowance Details

Active allows you to deactivate any User Modified Pay Rates that are no longer required.

🎯 Active cannot be deselected if the

Pay Rate is assigned in Pay Template within the Payee Master File.
Allowance is assigned in All Purpose Allowance or Pay Template within the Payee Master File.
Deduction is assigned in Pay Template or Variable Deduction Banking and Repayments within the Payee Master File.

The Description can be changed when creating or editing User Modified Allowances, allowing you to define the description shown in the Payee's Pay Advice Slip.

$ (or % of Rate Per Hour) allows you to define whether this payment is a set rate ($) or a percentage (%) of the Payee's Rate Per Hour for all User Modified Allowances. If $ (or % of Rate Per Hour) is set to

Per Hour, Per Pay Period, Per Lump Sum, Per Piece or Per KM, and
- % is selected, the rate is
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - calculated by multiplying the Rate Per Hour defined within the Payee Master File by the value entered, or
- $ is selected, the rate is
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - The Pay Rate when it is added in Compose (STEP 3 of Pay Day).
Per Day
- % is selected, the rate is
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - calculated by multiplying the Rate Per Hour defined within the Payee Master File by the Hours Per Day value.
- $ is selected, the rate is
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - The Pay Rate when it is added in Compose (STEP 3 of Pay Day).

Paid By allows you to define the Quantity for all User Modified Allowances. If Paid By is set to

Per Hour
- The quantity is obtained from OTE Hours Per Week when the Allowance is loaded in All Purpose Allowance, Advanced Pay Template or Compose (STEP 3 of Pay Day).
Per Pay Period, Per Lump Sum, Per Day, Per Piece or Per KM
- The quantity defaults to 1 when the Pay Rate is added in All Purpose Allowance, Advanced Pay Template or Compose (STEP 3 of Pay Day).

Report To Group is disabled in both System Default and User Modified Allowances and defines the section to which the dollar amount associated will be included in Reports.

Hide Quantity on the Pay Advice Slip and Summary Reports can be changed when creating or editing User Modified Allowances. This field defines if the Quantity/Hours associated with this Allowance should be shown or hidden from the Pay Advice Slip and Pay Advice Summary Reports.

Hide Rate on the Printed Pay Slip can be changed when creating or editing a User Modified Allowance. This field defines whether the rate associated with this Allowance should be shown or hidden from the pay advice slip.

Available in All Purpose Allowance can be changed when creating or editing a User Modified Allowance. This field defines if this Allowance should be available for selection in All Purpose Allowance within the Payee Master File.

Taxation

Category is disabled in System Default and User Modified Allowances and defines the group of payments this type falls into.

Reportable - Allowances that must be reported to the ATO.

Non-Reportable - Allowances that are not STP Reported, typically due to being less than the relevant ATO measure.

Payee Tax Treatment Categories are disabled in System Default and User Modified Pay Rates. They define which Payee Tax Treatments can have this Pay Type selected within Process based on the ATO's STP Phase 2 requirements. The Payee Tax Treatment Categories presently available in e-PayDay Go are;

Regular (R).

Seniors and Pensioners (S).

Working Holiday Maker (H).

No TFN (N).

Foreign Resident (F).

Seasonal Worker Programme (W).

Horticulturalists and Shearers (C).

Taxable is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is considered Taxable per the relevant Payee Taxation Schedule.

Include in W1 - Total salary, wages and other payments is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross Wages (W1).

Include in Gross (STSL, MLS) is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross for calculating Student and Training Support Loans (STSL) and Medicare Levy Surcharge (MLS) repayments.

Ordinary Pay/Wages (Portable Long Service Leave) is disabled in System Default Pay Rates, enabled in User Modified Pay Types and defines if the amount associated with this payment is included in the Portable Long Service Leave Report for each State/Territory.

Include in Wages Declaration (WorkCover) is disabled in System Default Pay Rates, enabled in User Modified Allowances and defines if the amount associated with this payment is included in the Wages Declaration (WorkCover) Report.

Include in Payroll Tax (SRO) is disabled in System Default Pay Rates, enabled in User Modified Allowances and defines if the amount associated with this payment is included in either the Payroll Tax (SRO) or Payroll Tax (SRO) (Non-Taxable Wages) Report.

Tax Treatment is disabled in System Default and User Modified Allowances and defines the Taxation Schedule to which this payment applies.

Income Stream is disabled in System Default and User Modified Allowances and defines the ATO Income Stream for STP Phase 2 Reporting, which includes this payment.

Tuple Name is disabled in System Default and User Modified Allowances and defines the ATO Tuple Name for STP Phase 2 Reporting, which includes this payment.

Allowance Type Code is disabled in System Default and User Modified Allowances and defines the Type Code for STP Phase 2 Reporting, which includes this payment.

Other Allowance Description is disabled in System Default Allowance, enabled in User Modified Allowances and defines the description required when Allowance Type Code = OD.

Include in Gross (Salary Sacrifice) is disabled in System Default and User Modified Allowances and defines if the amount associated with this payment is included in Gross for calculating Salary Sacrifice.

Superannuation

The OTE (SGAA) checkbox determines if the amount associated with this Allowance is considered Ordinary Time Earnings per the Superannuation Guarantee (Administration) Act. If the checkbox is not selected, the Pay Rate is not considered to be Ordinary Time Earnings per the Superannuation Guarantee (Administration) Act.

The OTE (Industrial Instrument) checkbox determines if the amount associated with this Allowance is considered to be Ordinary Time Earnings per the Industrial Instrument the Payee has been hired.

The Hours for Employer SG checkbox determines if the amount associated with this Allowance is considered to be included in the Hours Calculation for Employer SG. This relates to the Under 18 and Domestic and Private Worker Employer SG Rules.

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